Italy disaster’s initial cost pegged at $85-95 mn

Carnival Corp, the owner of the luxury liner that ran aground said the initial cost of the disaster was $85-95 million.

New York: Carnival Corp, the owner of the
luxury liner that ran aground off the Italian coast with the
loss of at least six lives, said on Monday the initial cost of the
disaster was USD 85-95 million.

The company said its priority was the "safety of our
passengers and crew" and expressed condolences to the families
of those who had died when the ship grounded and then pitched
over to leave it half submerged late Friday.

"A damage assessment review of the vessel is currently
being undertaken ... The vessel is expected to be out of
service for the remainder of our current fiscal year if not
longer," it said in a statement.

"For the fiscal year ending November 30, the impact ...
for loss of use is expected to be approximately USD 85-95

"In addition, the company anticipates other costs to the
business that are not possible to determine at this time," it

Carnival Corp is the parent company of Costa Crociere
(Cruises), the operator of the ship, and is listed on both the
New York and London Stock Exchanges where the stock slumped
more than 17 per cent in early trade.

The Costa Concordia ran aground off Giglio Island late
Friday, with rescue services still working today to search the
ship and surrounding waters.

About 15 people, including Italians, Americans and French
nationals, are still missing after the massive ship hit rocks
and capsized shortly after it began a seven-day Mediterranean

"It seems that the commander made errors of judgement
that had serious consequences," said a statement yesterday
from Costa Crociere, referring to Captain Francesco Schettino.

"His decisions in the management of the emergency did not
follow Costa Crociere`s procedures which are in line with
international standards."


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